Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units for conversion costs in the Lubricating Department for October?
A)43,100
B)37,100
C)44,780
D)47,780

Question

Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:  What were the equivalent units for conversion costs in the Lubricating Department for October?
A)43,100 
B)37,100 
C)44,780 
D)47,780

Quizplus · Accepted Answer

The equivalent units for conversion costs in the Lubricating Department for October can be calculated by adding the equivalent units of work done in October and the equivalent units already in process multiplied by the percentage of completion of conversion costs.

Equivalent units of work done in October = 42,000 units (given) 
Equivalent units already in process = 1,780 units (given)

Percentage of completion of conversion costs = 100% (given)

Therefore, equivalent units for conversion costs = (42,000 + 1,780) * 100% = 44,780 units.

Hence, the correct answer is option C.

Narver Corporation Uses the Weighted-Average Method in Its Process Costing